Joint cost allocation weighted average method
Garys Grooves Co. produces two types of carving knives, one with a handle made of a polymer that looks like walnut wood and another with a handle made with a polymer that looks like red oak. The knives are made through a joint production molding process that produces knife blades for red oak handle knives and knife blades for walnut handle knives at the split-off point. The polymer for the red oak handle knife blades requires twice as much cooling time as the polymer for the walnut handle knife blades, although all knives are removed from the joint molding process at the same time (i.e., once the cooling for the red oak handle knives is complete). The company allocates joint costs using the weighted average method based on the required cooling time of the two joint products. The following data is provided:
DATA
Joint product	Knife Blades at Split-Off	Weight Factor	Joint Costs
Red oak handle carving knife	360	2	$6,000
Walnut handle carving knife	280	1	6,000
Using formulas and cell references, perform the required analysis, and input your answers into the B, C, and D columns. Use the blue entry cells (B13:C14, B15) for intermediate calculations. Transfer the numeric results for the green entry cells (D13:D15) into the appropriate fields in CNOWv2 for grading.
Joint product	Weighted Blades of Molding Time	Weighted Percent of Molding Time	Allocation	Formulas
Red oak handle carving knife
Walnut handle carving knife
Totals